Hawaii Independent Contractor Agreement

Hawaii uses the ABC test for unemployment insurance purposes: a worker is an employee unless (A) the worker is free from direction and control, (B) the work performed is outside the usual course of the hiring entity's business, and (C) the worker is customarily engaged in an independently established trade. Failing any prong makes the worker an employee.

Yes. Any contractor providing taxable services in Hawaii must register for the General Excise Tax (GET) and file periodic returns. The GET is 4% on gross income from services. Contractors often add a GET surcharge to invoices. Failing to register and collect GET can result in assessments from the Department of Taxation.

Include: scope of services, payment terms, project milestones, IP assignment (all work-for-hire language), confidentiality, contractor's obligation to pay own taxes and GET, indemnification for claims arising from contractor's work, termination clause, and explicit statements about lack of employee benefits. Attach a schedule of deliverables.

Yes. Requiring contractors to carry general liability (minimum $1M/$2M) and professional liability (errors & omissions) insurance is standard practice and enforceable. Require the client be named as additional insured on the GL policy. This protects both parties and demonstrates the IC relationship by treating the contractor as an independent business.